Mohamed Alabbar: The Saudi market represents a long-term strategic investment opportunity

The founder and Chairman of the Board of Directors of Emaar Properties and the “Noon” e-commerce platform, Mohamed Alabbar, confirmed that the Saudi market represents a long-term strategic investment opportunity, noting that “Emaar” has been operating in the Kingdom for about 18 years through the “Emaar Middle East” and “Emaar Economic City” companies, and continues to explore new opportunities in the hospitality and commercial center sectors.

Al-Abbar said in an interview with Al Arabiya Business on the sidelines of the Future Investment Initiative conference: “The Kingdom is witnessing unprecedented urban and economic momentum, and opportunities are increasing, whether in hospitality or shopping centers. We are very optimistic about what we see on the ground.”

An expected correction in Dubai…but the market is holding together

Regarding expectations for a correction in real estate prices in Dubai during the next year, Al Abbar explained that the market is witnessing growth beyond expectations, driven by government policies, relative geopolitical stability, and the influx of residents from other countries towards the Emirates.

He added: “Yes, there is an increase in demand, whether for purchase or rent, but the projects under construction and expected in 2026 and 2027 will rebalance the market. We are not looking for unsustainable increases, but rather for a long-term healthy market, even if the profit margin declines a little.”

He pointed out that the real estate sector in the UAE does not depend heavily on bank financing, which gives it greater flexibility and stability compared to other markets such as the United States.

“Hala” project worth 100 billion dirhams

Al Abbar spoke about the new “This” project launched by Emaar with a value of 100 billion dirhams, saying: “The location is exceptional, next to Dubai Hills, and through it we will offer a luxury product within the Ultra Luxury category. The project reflects our confidence in the market and the continued demand for distinguished properties.”

Artificial intelligence? Emaar focuses on what it is good at

Regarding the trend of real estate developers towards investing in data centers and artificial intelligence, Al-Abbar said that Emaar is focusing on what it is good at, adding: “We are like a chef who is good at preparing Italian dishes. We know how to build cities, hotels, commercial centers, parks, and apartments. This is our field, and we do not chase every new trend.”

He explained that the company uses artificial intelligence and data center technologies in its operations, but it does not intend to enter as a direct developer in this sector, saying: “We have projects in 20 countries, and each project requires high concentration. We cannot distract ourselves. We leave artificial intelligence to the specialists, and we focus on building cities.”

Housing crisis in the United States

Regarding the housing crisis in the United States, Mohamed Alabbar said that the housing crisis in the United States represents a real threat to the global economy, noting that he can raise $400 billion in just one week to solve this crisis, if the political will is present.

Al-Abbar explained that his statement was not directed directly at the US administration, but rather was an attempt to spread awareness about an issue that does not receive sufficient attention, despite its profound impact on the American and global economy.

He continued: “America’s success is important to all of us, as is the success of Russia and China. But unfortunately, American politics revolves only around elections, and not around radical solutions. The housing crisis there is not just a real estate crisis, but rather an economic and social crisis.”

He pointed out that solving the housing crisis could achieve greater tax and economic returns than investments in artificial intelligence or renewable energy, in terms of creating jobs and increasing individuals’ income.

Noon changed my way of thinking

Speaking about his experience with the “Noon” platform, Al-Abbar said that the project was not just an investment in e-commerce, but rather an educational experience that changed his way of thinking about business management. He continued: “Noon taught me how to use technology intelligently, how to be accurate in costs, and how to develop the work method. These lessons were reflected in the performance of Emaar, which today has become one of the most accurate companies in implementation.”

He added that Noon has relied on artificial intelligence since day one, as the platform receives more than 6 million visitors daily, which requires smart systems to manage operations efficiently.

Public Proposals… “Leave something on the table”

Regarding the possibility of offering “Noon” for public subscription, Al-Abbar said that the Board of Directors is studying this option, but there is no final decision yet, noting that the company is profitable, but it is constantly investing in new development projects.

“We are not a private investment fund aiming to exit after five years. We are a national company, we believe that technology should be part of our future, and we want to launch the company when it is ready by all standards.”

Al-Abbar criticized some IPOs that are made at high prices, saying: “The investor who offers the company should leave something on the table. If you sell 20%, let people benefit a little. The good is there, and you should not take everything.”

Digital currencies…we await clarity in government policies

Regarding the use of digital currencies in real estate sales, especially in Dubai, Alabbar said that “crypto is inevitably coming,” but stressed the need for clear policies from central banks and governments.

He continued: “We do not want to risk the reputation of our companies. We are waiting for clear laws from the regulatory authorities, and then we will take action. We love the system, and we work in countries that respect the law, such as Saudi Arabia, the Emirates, and Egypt.”